Zomato Employees To Get 4.66 Crore Shares At 98% Discount

Food delivery start-up Zomato has allotted 4.66 crore shares to its employees from the ESOP (employee stock option plan) pool for Rs 1 amid its shares losing 21 per cent in value over the last two days..The allotment is worth around Rs 200 crore at current share price levels. Zomato shares are currently trading at Rs 42.95. .The distribution of 4,65,51,600 equity shares to employees upon the execution of vested stock options had been approved by the company's nominating and compensation committee of its board of directors, the company said in a regulatory filing on July 26..Market analysts have warned that the company's share price may continue to face sell-off pressure this week. This word of caution comes when the one-year lock-in period for 78 per cent of Zomato's stock – roughly 613 crore shares – ended on July 23..At the end of the one-year lock-in period, Zomato saw its shares drop more than 14 per cent to a record low. The company's valuation has decreased by more than 60 per cent after its much-hyped stock market debut. Listed on July 23, 2021, Zomato's initial public offering was a resounding success as it was subscribed 38.25 times, with a debut at a premium of 53 per cent..The Zomato stock had reached a record high of had hit a record high of Rs 169.10 on November 16, 2021. However, its price has been sliding significantly in recent weeks..Meanwhile, Deepinder Goyal, the CEO of Zomato, announced in a recent internal message that he would donate over Rs 700 crore of the income from his ESOP to the Zomato Future Foundation in FY22. The funds would go toward paying for the education of the delivery partners' children..Zomato's Board of Directors recently approved a proposal to acquire quick commerce company Blinkit – formerly known as Grofers – for Rs 4,447 crore. .However, reports also suggest that investors are not comfortable with the acquisition of Blinkit.

Zomato Employees To Get 4.66 Crore Shares At 98% Discount

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